Major Cineplex Group

Major Cineplex Group Plc  (MAJOR)

Major should benefit from behavioural shifts as condo-living urban consumers go out more and rural customers’ entertainment options are expanded by new outlets. While discretionary, movie consumption is affordable at THB144 for two hours of quality entertainment. We revise up 2013-14 forecasts due to film hire rate reductions, raising our target price (based on DCF and PEG) by 4.6%. Despite a 33% jump since our upgrade on 5 Oct, Major is still an Outperform with possible re-rating multiples and an earnings surprise as catalysts.